Shares of Morgan Stanley (NYSE:MS) are up today, amid rumors that the company plans to cut up to 25% of their fixed-income jobs. While no official word was made by the company themselves, the speculation seems to have grounds to stand on.
According to the rumors, the cuts will effect all regions and they will take place within the next two weeks or so. The cuts would be in response to sucessive quarters which saw disappointing returns in bond trading.
The stock is up 1.41% or $0.48 after the news, hitting $34.26 per share. About 11.18M shares traded hands. MS has declined 8.83% since April 27, 2015 and is downtrending. It has underperformed by 7.93% the S&P500.
Out of 15 analysts covering Morgan Stanley (NYSE:MS), 9 rate it “Buy”, 0 “Sell”, while 6 “Hold”. This means 60% are positive. $82 is the highest target while $1 is the lowest. The $37.86 average target is 10.51% above today’s ($34.26) stock price. Morgan Stanley was the topic in 26 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Macquarie Research maintained the stock on October 20 with “Neutral” rating. RBC Capital Markets maintained the shares of MS in a report on October 20 with “Outperform” rating. Finally, Credit Suisse initiated the stock with “Neutral” rating in a September 15 report.
The institutional sentiment increased to 0.97 in Q2 2015. Its up 0.07, from 0.9 in 2015Q1. The ratio is positive, as 52 funds sold all Morgan Stanley shares owned while 296 reduced positions. 81 funds bought stakes while 256 increased positions. They now own 1.55 billion shares or 2.91% less from 1.60 billion shares in 2015Q1.
Mitsubishi Ufj Financial Group Inc holds 100% of its portfolio in Morgan Stanley for 432.02 million shares. Capital Growth Management Lp owns 6.53 million shares or 7.25% of their US portfolio. Moreover, Kiltearn Partners Llp has 6.49% invested in the company for 3.60 million shares. The United Kingdom-based Wellcome Trust Ltd (The) As Trustee Of The Wellcome Trust has invested 5.49% in the stock. Welch Capital Partners Llc Ny, a New York-based fund reported 405,850 shares.
Morgan Stanley is a financial holding company. The company has a market cap of $65.02 billion. Through its subsidiaries and affiliates, the Company provides a variety of products and financial services to a group of clients and customers, including firms, governments, financial institutions and individuals. It has 21.29 P/E ratio. The Company’s operating divisions include Institutional Securities, Wealth Management and Investment Management.